With lower tier cities accounting for an ever-larger share of consumer spending, mobile’s importance increases even further. In 2012, just over a third of Android smartphones sold in China were in Tier-3 or lower cities. Now it is over half. But with many ‘smaller’ city consumers coming online for the first time on their mobile, their usage habits are quite different from their Tier-1 cousins. Consumers in lower tier cities spend a larger portion of their incomes shopping online, and are more likely to do it on mobile. They also view mobile ads quite differently. It’s another reason to consider localised tactics for different regions in China, something the team at China Skinny can help with. We hope you enjoy this week’s Skinny.

Xiaomi: The Secret to the World’s Most Valuable Startup: Xiaomi has “spun a dream of social advancement for China’s vast numbers of young people, a dream of luxuries from the developed world now within reach.” Organising VIP parties for average Chinese consumers to make them feel part of an exclusive club that they may not have been able to afford normally has helped create loyal fans and advocates. Another ingredient in Xiaomi’s success, is that senior executives take the time to meet users in person and answer their questions online [subscription required].

Chinese Consumers

Selling to China: Most Common Mistake Merchants Make: The most frequent mistake businesses make when entering new markets is not localising marketing and sales strategies to the market. Digital channels such as ecommerce and social media provide real time data to assess market demand and responses to initiatives.

China’s Buy-Out of Corporate Europe, in Maps and Charts: The lower Euro has helped motivate firms from Greater China go on a spending spree acquiring businesses in Europe, spending more in just the first three months of 2015 than any full year in history. The UK has been the top market for acquisitions in the past 15 years, with investments over five times that of second-placed France.

Food & Beverage

Yum’s Upmarket China Diner Seeks Recipe for Revival: KFC and Pizza Hut owner Yum Brands has opened a trendy Shanghai eatery Atto Primo overlooking the Bund in Shanghai. The restaurant’s dimmed lights, colonial-style balconies, 16th century Italian painter-inspired murals and fancy crystal make up what the company calls “an innovation lab to help us learn more about the evolving tastes of Chinese consumers.”

Regulator: Food Complaints Double to Half a Million Last Year: There were 562,402 complaints and tip-offs about food, pharmaceuticals, dietary supplements, cosmetics and medical equipment in China last year. Almost four out of five complaints were made on the Government’s Whistleblower hotline. Food made up 74% of complaints, with most complaints regarding online sales of fake products, false advertising, unlicensed production and adverse reactions.

Chinese Tourists

Festivals Need to Tap Into the Huge Chinese Market: 81% Chinese international travellers strongly agreed that “when travelling internationally I always look to time my trip and places visited with an event or festival of ­interest,” according to a Tourism Australia survey [subscription required].

Entertainment

Will China Prefer Blondes? Cartoon Marilyn Monroe Set to Debut: A joint Chinese-US venture hopes to tap into Chinese consumer’s love of cartoons with Mini-Marilyn. Cutesy Japanese personalities such as Hello Kitty and Doraemon are currently the most popular foreign characters, but American classics are investing to increase their presence in China[subscription required].

Auto

Ford Motor Company Plots Its Future Growth in China: In 2014, Ford sold more than double the number of cars in China than in 2012, even with growth restricted by production constraints. Ford’s next phase in China includes increasing its manufacturing capacity significantly to drive further growth.